Credit Card For Student
A Credit Card For
Student
For most students their first experience with credit cards
is either through parents co-signing their
student credit card applications or alternatively, providing
them with a companion card to their personal credit card account.
For other college students there is the option of obtaining
their own student credit card - which is a growing trend
among credit card companies who realise the long-term value
of nurturing long-term loyalty among students.
College student credit cards are an important financial tool
for students, especially since a student credit card will
present the first real opportunity for engaging in the
practicalities of independent living while learning the value
and responsibilities that go hand in hand with financial
self-management.
It therefore come as no surprise that students are exposed to
intensive on-campus recruitment advertising by credit card
companies who offer freebies such as food, clothing, computers
and other
enticements for on-the-spot sign-ups. But how do you as a
student go about choosing the best college student credit
card offer from the countless numbers that are constantly
being pushed under your nose?
If you're looking for a credit card for student life, perhaps
the first thing you will need to learn is how to
differentiate between the different credit cards for students
that are on offer. Not an easy thing to do when you consider
that statistics show that on average, each student will
receive college student credit card offers of between 5-7
cards in the first week of college.
However, while on the one hand freebies with a student credit cards might seem a really tempting proposition, don't
allow yourself to be swayed by these. The chances are that
by shopping around you will most probably find far better
students credit card deals than those being presented to
you.
Choosing Low Interest Rate
Credit Card For Student Life
One of your first and most important considerations when
choosing a credit card for student life, is the rate of
interest you will pay on your student card and the
types of student credit cards.
The interest rate on a credit card for student will be far
higher than for other cards, on account that students have
not yet proven themselves with managing credit card credit
nor the repayment of loans responsibly. Without this credit history logged at the credit reference
agency or credit bureau, students are not yet on the
credit card/credit map.
Those students who have income or who have some former
credit standing, will have already established a credit history
and this will count favourably in helping them to secure the
lowest credit card rates.
There are many a credit card for student, offering 0%
introductory rates - typically for the first 6-12 months. If
you don't have a track record with credit though, the pickings
will be limited. Again, the advice from money experts is to
aim for a credit card for student life that has an annual
percentage rate (APR) in the region of 16% - 17% or lower if
you can.
If it is the case that you have not yet established a credit
history, as is the case with many students who have had
no prior experience with credit, this should not however prevent
you from still securing reasonably low interest rate credit cards
or even prepaid credit debit cards.
The general advice offered from some financial experts is that
when deciding on a credit card for student life, choose cards
for which you qualify, that boast the lowest credit card rates
that will apply after the initial sign up period has expired.
No matter how tempting the incentives on a credit card for
student offer is, you should avoid at all cost a student credit
card that carry an APR of over 20%. Otherwise you run the
risk of running up student credit card debt on these high
Apr student credit cards.
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
advice.
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